Sec. 104. Liquidity for mortgage servicers and residential rental property owners
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Section 4003 of the CARES Act ( 15 U.S.C. 9042 ), is amended by adding at the end the following: Subject to paragraph (2), the Secretary shall ensure that servicers of covered mortgage loans (as defined under section 4022) and multifamily mortgage loans (as defined under section 4023) are provided the opportunity to participate in the loans, loan guarantees, or other investments made by the Secretary under this section. The Secretary shall ensure that servicers are provided with access to such opportunities under equitable terms and conditions regardless of their size.
In order to receive assistance under subsection (b)(4), a mortgage servicer shall— demonstrate that the mortgage servicer has established policies and procedures to use such funds only to replace funds used for borrower assistance, including to advance funds as a result of forbearance or other loss mitigation provided to borrowers; demonstrate that the mortgage servicer has established policies and procedures to provide forbearance, post-forbearance loss mitigation, and other assistance to borrowers in compliance with the terms of section 4022 or 4023, as applicable; demonstrate that the mortgage servicer has established policies and procedures to ensure that forbearance and post-forbearance assistance is available to all borrowers in a non-discriminatory fashion and in compliance with the Fair Housing Act, the Equal Credit Opportunity Act, and other applicable fair housing and fair lending laws; and comply with the limitations on compensation set forth in section 4004.
A mortgage servicer receiving assistance under subsection (b)(4) may not, while the servicer is under any obligation to repay funds provided or guaranteed under this section— pay dividends with respect to the common stock of the mortgage servicer or purchase an equity security of the mortgage servicer or any parent company of the mortgage servicer if the security is listed on a national securities exchange, except to the extent required under a contractual obligation that is in effect on the date of enactment of this subsection; or prepay any debt obligation. .
The Board of Governors of the Federal Reserve System shall— establish a facility, using amounts made available under section 4003(b)(4) of the CARES Act ( 15 U.S.C. 9042(b)(4) ), to make long-term, low-cost loans to residential rental property owners as to temporarily compensate such owners for documented financial losses caused by reductions in rent payments; and defer such owners’ required payments on such loans until after six months after the date of enactment of this Act.
A borrower that receives a loan under this subsection may not, for the duration of the loan— evict or initiate the eviction of a tenant solely for nonpayment of rent or other fees or charges; charge any late fees, penalties, or other charges to a tenant for late payment of rent; and with respect to a person or entity described under paragraph (4), discriminate on the basis of source of income. The Board of Governors shall issue a report to the Congress containing the following, with respect to each property owner receiving a loan under this subsection:
The number of borrowers that received assistance under this subsection. The average total loan amount that each borrower received. The total number of rental units that each borrower owned. The average rent charged by each borrower. The Board of Governors shall issue a report to Congress that identifies any person or entity that in aggregate owns or holds a controlling interest in any entity that, in aggregate, owns— more than 100 rental units that are located within in a single Metropolitan Statistical Area; more than 1,000 rental units nationwide; or rental units in three or more States.
Section 306(g)(1) of the National Housing Act ( 12 U.S.C. 1721(a) ) is amended— in the fifth sentence, by inserting after issued the following: , subject to any pledge or grant of security interest of the Federal Reserve under section 4003(a) of the CARES Act ( ; and Public Law 116–136 ; 134 Stat. 470; 15 U.S.C. 9042(a) ) and to any such mortgage or mortgages or any interest therein and the proceeds thereon, which the Association may elect to approve in the sixth sentence— by striking or
(C)and inserting
(C); and by inserting before the period the following: , or
(D)its approval and honoring of any pledge or grant of security interest of the Federal Reserve under section 4003(a) of the CARES Act and to any such mortgage or mortgages or any interest therein and proceeds thereon as .
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- 134 Stat. 470
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Sec. 104
Liquidity for mortgage servicers and residential rental property owners
Stat.134 Stat. 470
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